For first-time landlords there is a lot to consider when looking to invest in rental property. It is wise to work out how much you can borrow and gain pre-lending approval, sit down and work out what your goals are, research the market and gain the perspective of a Harcourts Property Manager, and seek the advice of your accountant. A Harcourts Real Estate Agent will be able to help you find the ideal investment property, show you its potential and help you navigate the buying process. In addition to doing due diligence, there are some other key considerations when it comes to investing in rental property.

Checklist for buying a rental property:

  • Is it what tenants want? (see below)
  • Is it in an area with a low vacancy rate?
  • Is it a low maintenance property?
  • Do you know what the future plans for the area are and how this may impact or benefit your investment?
  • Does it offer the right returns?
  • How much will you need to invest in updating the property to make it suitable for renting?

    • Key Considerations when investing in rental property

    What do tenants want? There is no point buying a property that tenants won’t want to rent. Every tenant and investment will be different, and depending on location and property type, the answers to this question will have some distinct differences. However, generally speaking, tenants are after rentals with:

  • Good location. You’ve heard it before and you’ll certainly hear it again, location is everything. Look for properties that are within 10km of an established city and close to public transport. Check if the neighbourhood is in a low-crime area, has access to public amenities such as parks or a beach, or attractions such shops and cafes, or are within fair proximity to schools. Properties that are near main roads but not right on them, in new areas but not currently under construction, or are updated properties in old areas with established trees and heritage features are all attractive to tenants.
  • Good quality kitchen. Key features of a good kitchen are adequate storage and bench-space to the amount of tenants occupying the property. Your kitchen does not need to be fancy, but is should be clean and tidy and include a pantry, cooktop and oven.
  • Heat pumps and air conditioning.
  • Fibre internet connection.
  • Usable outdoor area, yard or gardening space.
  • Parking options.
  • Built-in storage including built-in wardrobes.
  • Pet friendly.
  • Fully fenced.
  • Long-term leases e.g., 12 months with option to renew.
  • Healthy Homes compliant.

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